Music mega-star Shakira is facing yet another legal battle with Spanish tax authorities.
They have leveled fresh charges against the global pop icon.
This marks the second time Spain has accused the ‘Queen of Latin Pop’ of involvement in income and wealth tax fraud.
Shakira is renowned for her chart-topping hits like Hips Don’t Lie and Waka Waka amongst other hits.
Evading tax
Furthermore, the charges stem from allegations that she failed to pay a staggering 14.5 million euros (approximately Ksh 2 billion) in taxes for the years 2012-2014.
If found guilty, she could potentially face a jail sentence of up to eight years.
In this latest case, prosecutors allege that in 2018, Shakira neglected to report earnings of $12.5 million (approximately Ksh 1.7 billion) from an advance payment related to her El Dorado World Tour and other sources.
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Relationship with soccer star
During this period, she was in a relationship with FC Barcelona soccer star Gerard Pique and resided in the city with their two children.
The couple have since separated.
The heart of the prosecution’s argument lies in Shakira’s residency status during these times.
They contend that she was a Spanish resident and therefore obligated to declare all her global income in Spain, regardless of where it was generated.
Instead, they claim that she funneled funds into “companies domiciled in countries with low taxation and high opacity.”
Shakira graced the stage at the 2020 Super Bowl Halftime Show.
She is accused of evading millions in income tax, resulting in a calculated debt of 6 million euros (approximately Ksh 930 million), factoring in accrued interest and voluntary payments.
Shakira’s legal team has emphasized that they were not notified of this new case, as the artist is currently based in Miami.
They are diligently preparing for the trial related to the 2012-2014 fiscal year, scheduled to commence on November 20.
Spain’s determination of tax residency hinges on three key factors: physical presence, the location of family members, and whether the country is considered one’s “center of economic interest.”
